onomic reforms and privatization and in renewing
cooperation with international financial institutions. Economic
progress was badly hurt by slumping oil prices and the resumption of
armed conflict in December 1998, which worsened the republic's
budget deficit. The current administration presides over an uneasy
internal peace and faces difficult economic challenges of
stimulating recovery and reducing poverty. Recovery of oil prices
has boosted the economy's GDP and near-term prospects. In March
2006, the World Bank and the International Monetary Fund (IMF)
approved Heavily Indebted Poor Countries (HIPC) treatment for Congo.

Cook Islands
Like many other South Pacific island nations, the Cook
Islands' economic development is hindered by the isolation of the
country from foreign markets, the limited size of domestic markets,
lack of natural resources, periodic devastation from natural
disasters, and inadequate infrastructure. Agriculture, employing
about 70% of the working population, provides the economic base with
major exports made up of copra and citrus fruit. Black pearls are
the Cook Island's leading export. Manufacturing activities are
limited to fruit processing, clothing, and handicrafts. Trade
deficits are offset by remittances from emigrants and by foreign
aid, overwhelmingly from New Zealand. In the 1980s and 1990s, the
country lived beyond its means, maintaining a bloated public service
and accumulating a large foreign debt. Subsequent reforms, including
the sale of state assets, the strengthening of economic management,
the encouragement of tourism, and a debt restructuring agreement,
have rekindled investment and growth.

Coral Sea Islands
no economic activity

Costa Rica
Costa Rica's basically stable economy depends on tourism,
agriculture, and electronics exports. Poverty has been substantially
reduced over the past 15 years, and a strong social safety net has
been put into place. Foreign investors remain attracted by the
country's political stability and high education levels, and tourism
continues to bring in foreign exchange. The government continues to
grapple with its large internal and external deficits and sizable
internal debt. The reduction of inflation remains a difficult
problem because of rising import prices, labor market rigidities,
and fiscal deficits. The country also needs to reform its tax system
and its patt